The key facts

  • Nvidia shares have fallen about 29% since the beginning of October, and its market capitalization has dropped below Apple's
  • Jensen Huang stepped down as president, CEO and director with immediate effect
  • CFO Colette Kress has been appointed interim CEO; quarterly earnings are expected on November 17

Sixth week of decline and a leadership change

Nvidia shares were heading toward a sixth consecutive weekly decline on Friday, November 13 — the company's longest losing streak since 2012. Since the beginning of October, when the decline began, the chipmaker's market value has shrunk by about $1.6 trillion, and the shares themselves have lost 29%. Nvidia's market capitalization has fallen below that of Apple. At the close on Thursday, the shares ended down 4.3%, with weekly losses reaching about 11%.

Huang's departure and the interim CEO

The latest decline came after Nvidia announced on Thursday that co-founder Jensen Huang was leaving the posts of president, chief executive officer and board member with immediate effect. CFO Colette Kress has been appointed interim head of the company: she will retain her financial duties during the transition period while the board searches for a permanent successor — both internal and external candidates are being considered. According to reports, the departure was preceded by publications about Huang's extramarital affairs, adding uncertainty to the leadership against a backdrop of already anxious sentiment around artificial intelligence investments.

What is behind the selloff and what comes next

The selloff in the shares began before the personnel crisis: investors were worried that higher interest rates could raise borrowing costs for companies dependent on debt and investing in AI infrastructure — including buyers of Nvidia chips. The company stated that its operations, commitments to customers and product roadmap are expected to continue without interruption after the leadership change. The nearest test of the business's resilience is the quarterly earnings report on Tuesday, November 17: it will be the first results statement under Kress's leadership. The available publications do not disclose the reasons for Huang's final decision or the criteria for choosing a permanent successor.